Comments on: The Mortgage Meltdown and the Raleigh Real Estate Market – Part 1 of 3 http://www.raleighrealestatetalk.com/2007/08/24/the-mortgage-meltdown-and-the-raleigh-real-estate-market-part-1-of-3/ Raleigh Real Estate - Homes For Sale In Raleigh, Cary, Wake Forest Thu, 08 Jul 2010 03:46:45 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Bruce Fike http://www.raleighrealestatetalk.com/2007/08/24/the-mortgage-meltdown-and-the-raleigh-real-estate-market-part-1-of-3/comment-page-1/#comment-33 Bruce Fike Mon, 27 Aug 2007 19:14:22 +0000 http://raleighrealestatetalk.com/2007/08/24/the-mortgage-meltdown-and-the-raleigh-real-estate-market-part-1-of-3/#comment-33 There is no doubt what we are experienceing today is unprecedented in the real estate and mortgage industry. The mortgage meltdown of 2007 is or should be categorized as a category 5 hurricane. If you were to try and compare the economic damage of this financial storm to a hurricane it would be very difficult since the economic loss have been over $2 trillion in the global markets. What is next for real estate market? With changes to the credit tightening you will see about 15% of the buying population being removed due tightening restrictions. The borrowers who will be caught up in this mess are the ones who are looking for reduced document loans to no document loans. Individuals that can provide full documentation (pay stubs, W2's, asset statements, and can verify employment) for vanilla type loans will be fine. That is what was once required in the mortgage industry before we got into all of the stated and reduced document loan programs. Government loans will pick up a lot of the slack for those individuals with credit issues and minimal down payments. This is definetly a correction time in the mortgage industry and we will all weather the storm. We as a industry will just have to go back in time when someone wanted to buy a house they had to provide the required documentation that lenders required. There are plenty of banks and investors out there that are and have the funds to lend qualified borrowers and there always will be. There is no doubt what we are experienceing today is unprecedented in the real estate and mortgage industry. The mortgage meltdown of 2007 is or should be categorized as a category 5 hurricane. If you were to try and compare the economic damage of this financial storm to a hurricane it would be very difficult since the economic loss have been over $2 trillion in the global markets.

What is next for real estate market? With changes to the credit tightening you will see about 15% of the buying population being removed due tightening restrictions.

The borrowers who will be caught up in this mess are the ones who are looking for reduced document loans to no document loans. Individuals that can provide full documentation (pay stubs, W2’s, asset statements, and can verify employment) for vanilla type loans will be fine. That is what was once required in the mortgage industry before we got into all of the stated and reduced document loan programs. Government loans will pick up a lot of the slack for those individuals with credit issues and minimal down payments.

This is definetly a correction time in the mortgage industry and we will all weather the storm. We as a industry will just have to go back in time when someone wanted to buy a house they had to provide the required documentation that lenders required. There are plenty of banks and investors out there that are and have the funds to lend qualified borrowers and there always will be.

]]> By: The Mortgage Meltdown and the Raleigh Real Estate Market - Part 2 of 3 http://www.raleighrealestatetalk.com/2007/08/24/the-mortgage-meltdown-and-the-raleigh-real-estate-market-part-1-of-3/comment-page-1/#comment-32 The Mortgage Meltdown and the Raleigh Real Estate Market - Part 2 of 3 Mon, 27 Aug 2007 17:34:26 +0000 http://raleighrealestatetalk.com/2007/08/24/the-mortgage-meltdown-and-the-raleigh-real-estate-market-part-1-of-3/#comment-32 [...] The Mortgage Meltdown and the Raleigh Real Estate Market - Part 1 of 3 [...] [...] The Mortgage Meltdown and the Raleigh Real Estate Market – Part 1 of 3 [...]

]]> By: Doug Trudeau http://www.raleighrealestatetalk.com/2007/08/24/the-mortgage-meltdown-and-the-raleigh-real-estate-market-part-1-of-3/comment-page-1/#comment-31 Doug Trudeau Sat, 25 Aug 2007 15:44:48 +0000 http://raleighrealestatetalk.com/2007/08/24/the-mortgage-meltdown-and-the-raleigh-real-estate-market-part-1-of-3/#comment-31 Bob - good comments. Whether its called a melt down, correction, falling sky or anything else. The bottom line is and has been too many loans were written to make a quick buck for buyers who never should have bought a home at the price they did. The main concern is the challenge before us to correct, salvage, and recover. Through a positive approach, lender willingness to accept a level of loss, responsible media reporting and time this will all be behind us. Unfortunately, 20 years from now we may be reading the same information all over again if lessons are not learned and retained. Bob – good comments. Whether its called a melt down, correction, falling sky or anything else. The bottom line is and has been too many loans were written to make a quick buck for buyers who never should have bought a home at the price they did. The main concern is the challenge before us to correct, salvage, and recover. Through a positive approach, lender willingness to accept a level of loss, responsible media reporting and time this will all be behind us. Unfortunately, 20 years from now we may be reading the same information all over again if lessons are not learned and retained.

]]> By: Bob Fortner http://www.raleighrealestatetalk.com/2007/08/24/the-mortgage-meltdown-and-the-raleigh-real-estate-market-part-1-of-3/comment-page-1/#comment-30 Bob Fortner Sat, 25 Aug 2007 01:06:47 +0000 http://raleighrealestatetalk.com/2007/08/24/the-mortgage-meltdown-and-the-raleigh-real-estate-market-part-1-of-3/#comment-30 Hi Janis - As listing agents we all will have to be more cautious regarding buyer financing when evaluating offers for our sellers. Our fiduciary duties will require this in light of the changes in the lending industry. Thanks for your comments! Hi Janis – As listing agents we all will have to be more cautious regarding buyer financing when evaluating offers for our sellers. Our fiduciary duties will require this in light of the changes in the lending industry. Thanks for your comments!

]]> By: Bob Fortner http://www.raleighrealestatetalk.com/2007/08/24/the-mortgage-meltdown-and-the-raleigh-real-estate-market-part-1-of-3/comment-page-1/#comment-29 Bob Fortner Sat, 25 Aug 2007 00:59:55 +0000 http://raleighrealestatetalk.com/2007/08/24/the-mortgage-meltdown-and-the-raleigh-real-estate-market-part-1-of-3/#comment-29 Thanks for your perspective, Sheri. The main things that seem to have changed are the more limited availability of 100% financing and the increased level of income and asset documentation required. By the way, I've heard lots of good things about the strength of Wells Fargo throughout all of this. Thanks for your perspective, Sheri. The main things that seem to have changed are the more limited availability of 100% financing and the increased level of income and asset documentation required. By the way, I’ve heard lots of good things about the strength of Wells Fargo throughout all of this.

]]> By: Andy H. http://www.raleighrealestatetalk.com/2007/08/24/the-mortgage-meltdown-and-the-raleigh-real-estate-market-part-1-of-3/comment-page-1/#comment-28 Andy H. Sat, 25 Aug 2007 00:51:59 +0000 http://raleighrealestatetalk.com/2007/08/24/the-mortgage-meltdown-and-the-raleigh-real-estate-market-part-1-of-3/#comment-28 As a mortgage lender, I would add to your comments that the news media is definitely over-hyping this situation. Rates are still at historical lows and there are hundreds of banks out there that want to lend money to qualified customers. Meltdown or collapse of the mortgage industry is not an appropriate description. A more accurate description would be a "correction", which is similar to what we see in the stock market regularly. The fundamentals of lending still hold true for any home buyer. Consult carefully with a mortgage professional that is honest and trustworthy. Listen to their advice. Shop for the best offer. The choose the best offer and the best person to handle your transaction. Banks want to lend money and people want to buy homes. It's simple. As a mortgage lender, I would add to your comments that the news media is definitely over-hyping this situation. Rates are still at historical lows and there are hundreds of banks out there that want to lend money to qualified customers.

Meltdown or collapse of the mortgage industry is not an appropriate description. A more accurate description would be a “correction”, which is similar to what we see in the stock market regularly. The fundamentals of lending still hold true for any home buyer. Consult carefully with a mortgage professional that is honest and trustworthy. Listen to their advice. Shop for the best offer. The choose the best offer and the best person to handle your transaction. Banks want to lend money and people want to buy homes. It’s simple.

]]> By: Janis Gagliardi http://www.raleighrealestatetalk.com/2007/08/24/the-mortgage-meltdown-and-the-raleigh-real-estate-market-part-1-of-3/comment-page-1/#comment-27 Janis Gagliardi Fri, 24 Aug 2007 21:30:05 +0000 http://raleighrealestatetalk.com/2007/08/24/the-mortgage-meltdown-and-the-raleigh-real-estate-market-part-1-of-3/#comment-27 Recently an associate in my office presented an offer with a approval letter from a very reputable national lender and the listing agent was having a fit about accepting the offer with the financing through this particular lender. She had heard some rumors about the company going bankrupt. As you mentioned above this lenders stability was definitely questioned. Recently an associate in my office presented an offer with a approval letter from a very reputable national lender and the listing agent was having a fit about accepting the offer with the financing through this particular lender. She had heard some rumors about the company going bankrupt. As you mentioned above this lenders stability was definitely questioned.

]]> By: Sheri http://www.raleighrealestatetalk.com/2007/08/24/the-mortgage-meltdown-and-the-raleigh-real-estate-market-part-1-of-3/comment-page-1/#comment-26 Sheri Fri, 24 Aug 2007 20:16:31 +0000 http://raleighrealestatetalk.com/2007/08/24/the-mortgage-meltdown-and-the-raleigh-real-estate-market-part-1-of-3/#comment-26 As a lender with a joint venture of Wells Fargo, I must say that I'm happy I work for a company that is extremely stable during these times. However, that's not to say that we haven't been impacted by some guideline changes. Many buyers who need a loan will not be impacted by this "credit crunch", however, some "out of the box" loans have been done away with and people wanting 100% financing, no doc loans, etc may find that either they can no longer qualify for what they could a month ago or it is a lot more expensive to do so. People wanting 100% financing should not be alarmed - there are still many products out there to achieve this - it just will not likely be in the form of an 80/20 loan that they may have previously obtained. As a lender with a joint venture of Wells Fargo, I must say that I’m happy I work for a company that is extremely stable during these times. However, that’s not to say that we haven’t been impacted by some guideline changes. Many buyers who need a loan will not be impacted by this “credit crunch”, however, some “out of the box” loans have been done away with and people wanting 100% financing, no doc loans, etc may find that either they can no longer qualify for what they could a month ago or it is a lot more expensive to do so. People wanting 100% financing should not be alarmed – there are still many products out there to achieve this – it just will not likely be in the form of an 80/20 loan that they may have previously obtained.

]]> By: webcosmo http://www.raleighrealestatetalk.com/2007/08/24/the-mortgage-meltdown-and-the-raleigh-real-estate-market-part-1-of-3/comment-page-1/#comment-25 webcosmo Fri, 24 Aug 2007 19:24:48 +0000 http://raleighrealestatetalk.com/2007/08/24/the-mortgage-meltdown-and-the-raleigh-real-estate-market-part-1-of-3/#comment-25 very good info. recently I faced problems buying a house. nobody would give me loan with a score of 640. They been asking for 15% down. very good info. recently I faced problems buying a house. nobody would give me loan with a score of 640. They been asking for 15% down.

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